Episode description
Many of Centrifuge’s partners had to furlough staff members who are not necessarily returning, leaving partners understaffed. These individuals opted for careers in stable industries such as construction, where their skill sets applied. This left inexperienced individuals in management positions. “It’s just another hurdle to get over when you’re already trying to go back to live events after a year and a half hiatus,” Highland said.
Because many clients relied on concert and party revenue, shifting to virtual events has not an option. “For a lot of people like us who are more production-focused, it was the ability to pivot and generate revenue through virtual events,” McDonald explained. The fixed overhead for managing a warehouse and storing large projectors requires massive footprint and cost, and the equipment is not easy to resell. This resulted in downsizing or leaving the industry for some. “They just didn’t have the in clientele that had the need for a virtual dynamic and they just postponed until they were able to go back to the in-person events again,” said Highland.
While the struggles are multifold, Highland says the industry will slowly correct itself. “As demand comes back, I think that we will see expansion back into their old territories, but I think it’s going to be slow and be very cautious expansion just to make sure they’re not overstretching themselves.”
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